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Bitzio Inc. (OTCBB:BTZO), a leader in media, mobile games, and the gamification of mobile apps, has agreed upon terms to acquire German mobile gaming and software company, ACT Smartware ("ACT"). The acquisition terms have been agreed upon by both companies and a signed letter of intent setting out the terms has been executed. The acquisition is subject to final due diligence and certain requirements under German law. It is expected that the transaction will close in 1-2 weeks.

Upon formal execution of the agreements in Germany, the ACT team and all assets will become a part of Bitzio, Inc. The acquisition will be completed using only Bitzio shares and no cash outlay from Bitzio. All revenues generated by the acquisition will be re-invested into the growth of marketing, development and growth of Bitzio’s mobile games. ACT reported 2011 revenues of approximately $1 million USD. Bitzio anticipates revenue to continue to be generated through existing ACT clients and apps, as well as new apps that will come to market shortly.

"This acquisition has been unlike any other in Bitzio’s history. The ACT team has already been working intimately with Bitzio and has been integral in the development and deployment of key products such as our EveryoneApps platform. With approximately 4,000 apps deployed through EveryoneApps, we have already seen the depth of talent the ACT team brings to us. They have amazing technical expertise and incredible knowledge of the gaming user experience - both skills we’re very happy to continue expanding in house," commented William Schonbrun, President and CEO of Bitzio.

Tobias Berlin and Gerd Mettendorf, founders of ACT Smartware, have been in the technology sector since 1993 and 1985, respectively. They have created innovative software solutions for large multi-national companies such as Daimler/Chrysler and Bosch, both of which are still on the company’s client roster. In 2008, as early adopters to mobile technology, Berlin and Mettendorf created their first apps. To date, their business apps consistently receive 4-5 star user ratings and deliver higher revenue then most gaming apps.

Schonbrun continued, "This adds another critical piece to our mobile gaming and entertainment story. With our recent acquisitions of MPC, Knuckle Face Games and now ACT, Bitzio has the technical talent, mobile app deployment, marketing and media and animation capabilities to create the best in mobile gaming experiences in the world. In fact, we already have plans in place to utilize many of ACT’s existing apps and update them with a media and animation user experience from MPC, resulting in apps that will blow users’ minds. These apps will be like playing inside a Pixar movie with gamification and behavioral data continually making the experience better every time a user signs in."

Tobias Berlin, Founder of ACT adds, "Developing app concepts and creating the technology to make them happen is where we excel. Bringing those ideas to life successfully in terms of marketing is a challenge for developers of any level. What intrigued us about Bitzio was their ability to see the big picture and string together the talent and assets which power the mobile app consumer experience as well as offer companies behavioral data and access to their fan bases. It is the first all-encompassing solution we have seen in the mobile apps sector and we are proud to become a part of Bitzio."

Each winter, a new legion of touchscreen users come to the cold realization they can’t use their fancy gadget while wearing gloves. Every time they get a call, text or e-mail, they need to take off their gloves to respond. That’s the last thing anybody wants to do on a bitter cold winter morning or while on the ski slopes.